Novartis Q3 earnings beat expectations on strong sales of key drugs, boosts 2024 outlook – Novartis (NYSE:NVS)

on Tuesday Novartis AG NVS reported third-quarter sales of $12.823 billion, up 9% (+10% in constant currency), beating the consensus estimate of $12.76 billion. The volume contributed to the growth by 12 percentage points.

Swiss pharmaceutical giant reported adjusted earnings per share is $2.06. US compared to USD 1.74. US a year ago and beats the consensus of $1.96.

Core operating income rose to $5.15 billion in the third quarter from $4.41 billion a year earlier.

Read also: European Medicines Agency Commission upholds approval of Novartis Kisqali for patients with early breast cancer

Novartis generated $6 billion in free cash flow in the third quarter, up 18% year over year.

“All key growth factors contributed to the momentum. We achieved important indication extensions for Kisqali in early breast cancer and Fabhalta for IgA nephropathy, and we completed the PSMAfore filing for Pluvicto in the US. With the momentum in our business and plans, we were able to once again update our full-year plans and remain very confident in our medium-term outlook,” said CEO Vas Narasimhan.

Cosentyx’s quarterly sales increased 27% to $1.69 billion, driven by recent drug launches (including HS indications and an IV formulation in the US) and volume growth in core indications.

Heart failure drug Entresto’s sales rose 26% to $1.87 billion, driven by higher demand. This drug has increased in the US and Europe after medical treatment of heart failure, and in China in patients with hypertension.

Sales of the multiple sclerosis drug Kesimpta reached $838 million, an increase of +28%, reflecting increased demand for a highly effective product with convenient self-dosing.

Leadership: This year, Novartis also raised its forecast to 2024.

Novartis said in a statement that it expects full-year core operating income to grow by an “older tween” percentage, compared to its previous forecast of a “middle-aged and older tween” percentage.

Novartis is forecasting full-year sales growth in the low double digits, after previously targeting high-single- to low-double-digit growth.

Price action: Shares of NVS were down 3.29% at $111.82 in the previous session during a last check on Tuesday.

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